Wesfarmers considers $1 bet limits after GetUp! pokies campaign

Business Reporter

THE owner of Coles supermarkets, Wesfarmers, is considering $1 bet limits on the poker machines it owns as the company explores options to distance itself from the pubs and gambling business.

GetUp! confirmed it had dropped Wesfarmers from the anti-poker machine campaign that it launched earlier this year against Australia's supermarket giants after speaking with management and being encouraged by its commitment to tackle problem gambling issues.

''We were extremely pleased at the good faith they have shown over the past six months, but we're looking for more concrete answers at this stage,'' said GetUp! organiser Erin McCallum, who sent a letter last week requesting an update on the company's progress.

It is understood that Wesfarmers has engaged corporate consultants, the Boston Consulting Group, to look at the economic impact of introducing reforms, like $1 betting limits, on its poker machines, which are believed to number around 1300.

Wesfarmers spokesman Alan Carpenter said the company would not comment on what might be happening with its pubs business.

GetUp! has indicated that if it is not happy with Wesfarmers' progress it may still target Coles as part of its anti-pokies campaign this Christmas.

It is understood Wesfarmers is exploring alternatives to owning and operating its 92 pubs, and associated poker machines, as it does not see it as a natural fit with its other businesses. Betting limits are one of the options under consideration and not necessarily the most likely one to be adopted.

Implementation would be expensive and would only drive gamblers to nearby pubs and clubs if it was the only operator to implement them.

This argument was raised by Woolworths in opposition to GetUp!'s resolution to introduce $1 limits on its poker machines, along with other curbs.

Neither supermarket operator can afford to sell off its pubs if it compromises their liquor business, which have become a lucrative enterprise for both companies.

Wesfarmers and Woolworths are required to own pubs and hotels in Queensland as these are a prerequisite to operating bottle shops in the state, like Woolworths' Dan Murphy's brand. Most of Wesfarmers' pubs are in Queensland.

Woolworths has said that, in practice, pub ownership was also required to underpin its liquor business in other states. Most of the hotels owned by Woolworths' pub joint venture, ALH, are outside of Queensland.

The GetUp! campaign led to an extraordinary meeting of Woolworths shareholders last week to consider a resolution to introduce curbs on its poker machines.

The resolution was soundly defeated, with 95 per cent of investors voting against it. In his final meeting as Woolworths chairman, James Strong said the resolution was a ''radical proposal'' that was being ''put forward for one company and not for everybody else in any other form of gambling within Australia. I think we've made that point and it remains valid no matter what the arguments are around accountability''.